Sold Another 10 Calls on AMAT
I own 1000 shares of Applied Materials (AMAT) at $115.85. I’ve been selling Calls against these shares since I bought them on 3/3. On Friday I sold a 10 contract Put on this stock with a Strike Price of $116. I really like the stock and I sold the Put with the idea I wouldn’t mind owning another1000 shares. I sold the 1 day Put with a $700 premium instead of just buying the shares. The stock was put to me at $116. I look at this as getting paid to buy stock I want.
This morning the stock is up $3. I just sold a 10 AMAT 3/26/21 $120 Calls against these shares. I received a premium of $1.75 for $1750.
Bought the shares from a Put and sold a Call
3/19/21 – Buy 1000 AMAT @ $116.00
Today – Sell to Open 10 AMAT 3/26/21 $120.00 C @ $1.75 (+$1750)
If I get assigned I’ll make $4000 on the stock sale and keep the $1750 premium. In addition to making $700 from the Put premium. This can turn out to be a great trade. This gets a Risk Factor 1.
As I was writing this report on the AMAT trade I was filled on a trade with Advanced Micro Devices (AMD).
I bought 500 shares of AMD at $81.07 on 3/11. I was just filled on an order to sell another Call. I sold 5 AMD 3/26/21 $81.50 Calls for a premium of $1 for $500.
Sell to Open 5 AMD 3/26/21 $81.50 C @ $1.00 (+$500)
This trade also gets a Risk Factor 1.
Successful trading,
Steve
The Options Coach